Special relativity is notoriously easy to misunderstand, and I should know as I misunderstood it myself for a long time before I got it.
The Doppler effect does apply in SR, and can cause events to appear to increase or decrease in frequency, depending on whether you are moving towards or away from them, and that is caused by the fact that the distance light has to travel from the events to reach you is changing all the time when you are in motion. Time dilation has a quite separate cause.
If you want to develop a rock solid conceptual appreciation of SR there are a number of key principles you have to work at until you really understand them.
One is that all all motion is relative, so all the main effects of SR apply symmetrically. For example, you might have heard that one of the facts explained by SR is that muons travelling through the atmosphere at close to the speed of light have extended lifetimes because of time dilation. Well, since all motion is relative, you are moving at close to the speed of light relative to a passing muon, and in the frame of the muon it is you who is time dilated and length contracted.
Time dilation is perhaps the most widely misconstrued effect in SR, probably the result of the common saying 'moving clocks run slow'. You shouldn't think that a moving clock somehow stops measuring time properly. If a clock is time dilated relative to your frame of reference so that it measures five seconds, say, while ten seconds have passed in your frame, that doesn't mean the moving clock is measuring time at a reduced rate- what it means is that only five seconds have passed for the moving clock, and the moving clock has accurately measured it as such, ticking away at its usual rate.
Time dilation is a consequence of the relativity of simultaneity, as is length contraction, so I recommend you focus on understanding that first. If you are interested, I've added an illustration below of how time dilation comes about and how it arises symmetrically.
Imagine you are walking along a line of people each of whom has a watch identical to your own and ticking at the same rate, but, and this is important, each watch down the line has been set one minute ahead of the watch before it. As you pass each person and ask them the time, your own watch will seem to lose a minute each time- ie it will appear time dilated. That is not because your watch is actually ticking more slowly, but because each watch you pass is a minute ahead of the last one.
Now, imagine you are being followed in your walk by a line of friends, also with identical watches to yours, but again the watch of each friend in the line is set a minute ahead of the friend in front of them. From the perspective of any of the people in the stationary line, they see you pass, then they see each of your friends passing with a watch that is a minute further ahead, so they think their own watch is losing a minute each time (ie time dilated).
Because all the watches are out of synch, everybody in the stationary line thinks their watch is time dilated compared with the walkers's watches, and every walker thinks their watch is time dilated compared with the stationary watches even though all the watches are ticking at exactly the same rate.
In SR this happens because a plane of constant time in one inertial frame of reference is a sloping slice through time in a frame of reference moving relative to it, the slope being upwards in the direction of motion. So if you are moving through a frame, the clocks ahead of you in that frame are increasingly ahead of your clock, the discrepancy increasing with distance, just as with the watches held by the stationary line of people. So although your clock continues to tick at the rate of a second per second, it appears to lose time compared with the stationary clocks you pass because they are each set successively further ahead of each other in your frame of reference.
And finally, what causes time to dilate rather than contract is the fact that the plane of constant time in the stationary frame slopes upwards in your direction of travel. If it sloped downwards instead, then all the clocks ahead of you in the stationary frame would be gradually further behind each other, and as you passed them you would think your clock was gaining time and thus be time-contracted.